In my opinion, it is best to have two hard drives. One for windows and the other for Linux. If windows screws up, always does, then you have Linux to correct it.
Putting Windows and Linux on the same drive can be done but you will run in some problems in the future. Just do what trickykid told you and it will work. Use DOS defrag or Norton Speed Disk for DOS because in Windows the swap file and temp files can be located at the end after you exit. This way all your files is in the beginning. For fast defragging use space instead of full.
I suggest you don't make Fat32 for Linux. Try changing the LINUX parition to Linux Native if you do see Fat32 on the Linux paritions.
Try to make a boot disk so that you can re-make LILO if windows screws up.
In motherboard BIOS, let the BIOS detect your device. In simple terms, turn off PNP. Also if you have a ZIP drive, turn that channel that the ZIP drive is connect to. Zip drives gets in the way of paritioning programs such as FDISK and many others.